Residential Real Estate News
Great Miami Area Residential Sales Decline 15 Percent Annually in February
According to new data from the Miami Association of Realtors, total residential sales in Miami-Dade County fell by 15.5% year-over-year in February 2025, declining from 1,705 to 1,440 transactions. This decline is attributed to elevated mortgage rates, a sluggish stock market, limited condo financing, and inventory shortages at key price points.
Sales of single-family homes dropped by 8% year-over-year, decreasing from 764 to 703. Despite this downturn, single-family homes recorded year-over-year gains in eight of the 12 months in 2024. Meanwhile, existing condo sales fell by 21.7%, from 941 to 737. These figures would likely be stronger if the robust new construction market in South Florida were included. Limited financing and inventory at crucial price points continue to impact condo sales.
The median sale price of single-family homes rose by 0.8% year-over-year, increasing from $650,000 to $655,000. Miami single-family home prices have now risen for 159 consecutive months (13.25 years), marking the longest streak on record. Over the past decade, prices have surged by 167.3%, rising from $245,000 in February 2015 to $655,000 in February 2025. Similarly, Miami condo prices climbed 8.3% year-over-year, increasing from $420,000 to $455,000. Condo prices have remained steady or increased in 158 of the last 165 months (13.75 years), with a total increase of 140.7% from $189,000 in February 2015.
Miami's home equity gains continue to outperform the national average. A single-family home bought in Q3 2009 and sold in Q3 2024 generated a $542,175 gain in Miami-Dade County, compared to the U.S. average of $310,232, according to Miami Realtors Research.
Total inventory remains 6.5% below Miami's historical average of 18,851, with current inventory at 17,708. Active listings increased by 39.2% year-over-year, rising from 12,721 to 17,708. However, this increase is still insufficient to meet current demand. The inventory of single-family homes rose by 32% year-over-year, climbing from 3,895 to 5,140 active listings. Condo inventory increased by 42.4%, from 8,826 to 12,568, but remains 31.9% below the pre-pandemic level of 16,583 in February 2019. New condo listings rose modestly by 4.8% year-over-year in February 2025, compared to a 6.4% increase for single-family homes. Full-year 2024 data supports the trend of similar growth rates for both categories, countering the narrative that condo owners are rushing to sell.
Market conditions reveal a disparity between property types. Single-family homes currently have 5.8 months of supply, indicating a seller's market, while condos have 12.6 months of supply, reflecting a buyer's market. A balanced market is typically defined as having six to nine months of inventory.
Total dollar volume in Miami reached $1.5 billion in February 2025, marking a 4.48% increase from the previous year. The dollar volume of single-family home sales surged by 23.9% year-over-year to $951 million, while the dollar volume of condo sales dropped by 16.5% to $592 million.
Distressed sales accounted for only 1.5% of closed residential sales in February 2025, slightly up from 0.9% in February 2024. In stark contrast, distressed sales made up 70% of Miami sales in 2009. Of these distressed sales, short sales represented 0.3% of total transactions, while Real Estate Owned (REO) properties made up 1.2%. Nationally, distressed sales represented 3% of total sales in February 2025, unchanged from both December 2024 and the previous year.
Market timing has also shifted. Home sellers in Miami received 95.4% of the original list price in February 2025. The median number of days from listing to contract increased from 35 days last year to 46 days this year, while the median time to complete a sale rose from 77 days to 88. Condo sellers received 94% of the original list price. The median days from listing to contract rose from 49 days last year to 66 days this year, with the total time to sale increasing from 87 days to 106 days.
Cash sales continue to play a significant role in Miami's real estate market. In February 2025, cash sales accounted for 40.8% of closed transactions, down from 43.3% in February 2024. Nationally, 32% of home sales were cash purchases. Among these cash transactions in Miami, 54.3% involved condos, while 26.6% were single-family home sales.
Miami's real estate market remains resilient despite cooling sales, with rising prices and strong home equity gains. However, inventory shortages and market conditions highlight the varying experiences for buyers and sellers across different property types.
